Advice For Young Men: Credit Cards

[BunnyHardaway]

Re: Advice For Young Men: Credit Cards

I have one credit card, but:

A) it only has a $500 limit

and

B) my mom is the one that uses it, not me

It's given me a decent credit score, but I'd like to use it just once. I've had it for over 2 years now.

[Gotmadskillzson]

Re: Advice For Young Men: Credit Cards

I don't think I'll ever understand credit.

I had my credit raked over the coals when I went through a divorce in 2004. Up until recently I didn't have a CC and I didn't buy anything on credit. I rented apartments since then and I had the same car from 2002 to 2008. By 2008 I had saved enough money to buy myself a nice used Jeep Cherokee. A few months ago while I was looking in to buying a house my mortgage broker suggested I get a CC to help reestablish my credit. So, I got a CC with a 1000 limit, made two purchases (groceries and gas) and within a month my credit score went up by almost 25 points.

Yeah you need a credit card to help establish credit history and a credit score. When you going to buy a house or a brand new car and if you need financiing of any kind, they will look at your credit score.

Cell phone companies do it too. If you got jacked up credit, they going to ask for a deposit up front, plus the cost of the phone if you buying a contract phone.

I seen one lady her credit score was so jacked up, Walmart asked for a $400 deposit before she could buy the Iphone. I was like damnnnnnnnnnnnnnn. i never seen somebody credit that bad they had to deposit $400. I seen $150 and $200, but $400, wow. I was thinking in a month that phone will be disconnected LOL.

[p_rushing]

Re: Advice For Young Men: Credit Cards

Credit cards aren't a problem. The problem is the person using it. If you can't keep extra cash in your pocket without spending it, then get one with a low limit.

I got my first one in college, still have that one. I just cashed in my points for about $1,000 in gift cards, about 2 years of use. I have 4 cards, 2 get used because not all places take Amex. The other 2 I keep active by buying 2 things each year. This gives me a ton of available credit and shows lond standing accounts.

Just make sure you pay it off and you will get paid to spend money.

[TMagic]

Re: Advice For Young Men: Credit Cards

I'm soaking all this advice in fellas. Thanks a lot.

I guess the reason I thought about getting one would to build some credit. I'm 23 years old and don't have any.

I'm pretty sure that I wouldn't go crazy. I'd more than likely keep a low limit as well just because I know I'm not going to spend big.


Plus, to me, it seems like if I'm going to spend money, why not reap some of the awards/benefits some credit cards give you. Might as well take advantage of that, right? Or no?

[Jonesy]

Re: Advice For Young Men: Credit Cards

Yeah man for sure, if you have your head screwed on right and are aware of the perils it's all good. People act like it's the credit card's fault they ended up in debt. That's BS it's the person's fault and like you said it's a great way to get rewarded for things you would buy anyway.

I still remember when I was 19 and tried to get a new phone i had to get it under my then girlfriend's (now wife) name because i didn't have a CC and or credit rating and they wouldn't give me a phone on a contract.

[Gotmadskillzson]

Re: Advice For Young Men: Credit Cards

It all depends on the rewards........Some rewards are worth it, but most of them aren't. So make sure you read ALL that their rewards program involves. I mean if you don't travel, a credit card they give you flyer miles and hotel discounts is worthless if you not a traveling person.

Same thing with Best Buy rewards program, if you don't shop a lot at Best Buy, then it is once again worthless. So try to get one that has a rewards program that is universal, in the sense you can use it anywhere and anyway you want to use it.

[mjb2124]

Re: Advice For Young Men: Credit Cards

Lets face it, people primarily get credit cards to buy what ther ordinarily can't have given their income. My first sentence I stated: If you have the means to pay for things you want NOW then don't get a credit card.

So you just disagreed w/ the thought of living beyond your means? So did I. But if one is going to do it, might as well do it w/o paying out the nose on APR.

The problem is the ease of use. I'm not going to take $4000 in cash to purchase a TV at Best Buy. I'm also not going to carry a check book around which is more of a concern in regards to Identity Theft than a Credit Card.

What about online purchases or staying at a hotel or booking a flight? You have to use a Credit Card or Debit Card for those purchases. Using a Credit Card over a Debit Card makes more sense that many CC's will give cash back for larger purchases. The Debit Card will not.

The way I see it, if I and many of my friends can get a Credit Card at a pretty young age (high school) and never had a problem falling into CC debt, then there is no reason anyone else can't do the same. What annoys me in today's society is that people want to blame everything except themselves for their own mistakes. If someone fell into CC debt, don't blame the CC....blame oneself for not having the foresight and/or responsibility to purchase something they can not afford.

[mjb2124]

Re: Advice For Young Men: Credit Cards

STAY AWAY FROM DISCOVER CARD AT ALL COSTS !

I have a Discover Card. I've never known them to be anything but great (if they were anything less, I'd get another card). What I like is the cash back. Certain months they will give 5% back on different things - such as groceries, home improvement, restaurants, movies etc...

[NDAlum]

Re: Advice For Young Men: Credit Cards

The way I see it, if I and many of my friends can get a Credit Card at a pretty young age (high school) and never had a problem falling into CC debt, then there is no reason anyone else can't do the same. What annoys me in today's society is that people want to blame everything except themselves for their own mistakes. If someone fell into CC debt, don't blame the CC....blame oneself for not having the foresight and/or responsibility to purchase something they can not afford.

Exactly. The CC doesn't buy things it can't afford. The person with the CC does.

[Trevytrev11]

Re: Advice For Young Men: Credit Cards

Another reason to not get a credit card: Identity theft.

If someone jacked my wallet with $500 in cash, I'm out $500. If someone jacked my wallet and promptly rung up $500 on my credit card, I'm not liable. I can easily dispute those charges and have them wiped off my account.

If you are using your card to buy some stuff from shady internet sites, then I guess you are going to face some risk, but I've had a credit card for about 11 years now and have never once had a problem with someone else fraudulently using my card.

In fact, it's been the opposite. Chase has been a little too quick once or twice to put a freeze on my account due to activity they thought was suspicious.

Like anything, if you are responsible, credit cards are good. If you are not, then you will fall into trouble. The person using it is the problem, not the card.

[Trevytrev11]

Re: Advice For Young Men: Credit Cards

I'm also not going to carry a check book around

Oh my, this drives me nuts. Who still frequently writes checks these days and why? Nothing worse than waiting in line at Target for some old lady to finish filling out her check...waiting for the amount, asking for a pen,asking for the date, having to show ID, having the cashier struggle to put the check into the check reader.

A lot of people (my mom included) do not understand that a debit card works exactly the same way as a check in about 1% of the time taken. You slide the card, enter your pin and the money comes out of your checking account...some how people don't get that.

I understand if it's for a rent payment or something like that, but I'm talking about at the grocery store or Home Depot or something. I litterally write like 5 checks a year...and it pains me every time I have to.

[matt8204]

Re: Advice For Young Men: Credit Cards

If you going to get a credit card, make sure you have a GOOD paying job. Not some sales associate at Walmart, Target or Best Buy type of job. Or working at McDonalds or Burger King type of job either.

If you not making at least $3,000 a month, then use your credit card sparingly. Don't ever buy a tv or PC or laptop on a credit card. I seen way too many people sign up for Walmart and Best Buy credit cards just to buy a 52 or 55 inch LCD TV, then a year later they are still paying that credit card off.

You will be better off getting a debit card from your bank. That way you can only spend what you have in your checking account.

FYI

STAY AWAY FROM DISCOVER CARD AT ALL COSTS !

That company give away credit cards to 16 yeard olds without them even applying for it. I remember I was a sophmore in high school when I got a discover credit card in the mail with a $500 limit on it.

That is a TRAP.

Use credit cards for online stuff like amazon or etc. But with everything else in life, you want to pay in cash. If you got to rely on a credit card to buy something, then you don't need it, unless it is food of course.

But I am talking about gym shoes, cell phones, tv's, gaming systems, jewelry etc. Don't ever use a credit card to impress some chick either. And don't ever let a chick borrow your card either. Matter of fact don't even let family borrow your card.

Discover shouldn't be able to do that anymore. The new credit card laws that recently went into effect prohibit anyone under the age of 21 (I believe that's the cutoff) from getting a credit card unless they can show that they have a regular and adequate source of income. If they can't do this, their parents must co-sign on the card with them.

[NDAlum]

Re: Advice For Young Men: Credit Cards

ITT: we see if JBH goes back on an original stance...

[JBH3]

Re: Advice For Young Men: Credit Cards

ITT: we see if JBH goes back on an original stance...

I don't know why people keep quoting me...We're just talking in circles.

I initially stated (AGAIN) that: If you have the means to pay for the things you want NOW, then don't get a credit card.

Assuming TMagic wanted to live beyond his means, I offered advice on how to at least do it in a smarter way (low APR); "living smarter beyond your means" being the conundrum that it is.

Yes. You shouldn't live beyond your means, but people do and many do it w/o reading the fine print. Such as knowing about APR, fixed/variable, etc.

Do I have credit card debt? Yes. Do I have liquid assets that could pay it off in an instant too? Yes. My wife and I share an MMSA with more than enough to pay off all our credit card debt right now, but that would be a horrible use of a nice stash of liquid assets.

If you don't have that kind of financial flexibilty to "finance" a credit card then ONLY have a CC for emergency situations.

People have brought up good points:
-Credit Card for online purchases.
-CC for booking trips.
-CC's now-a-days being more secure, and more "identity-theft friendly" toward the victim of theft.

^The above...All good points,

Here's another one: You shouldn't be using a debit card to book trips or purchase things online because you risk a company putting a hold on your liquid assets; ex. if you book a hotel there's a $100 deposit fee...using your debit card for this will take away $100 from your cash account. This is where a credit card has its benefits.

Keeping that same "hotel" example in mind, one shouldn't be planning a trip if the main method of payment for that trip is credit, w/ no sufficient amount of liquid assets to fund the cost.



You want financial/credit card advice TMagic...Watch Suze Orman.

[p_rushing]

Re: Advice For Young Men: Credit Cards

I don't know why people keep quoting me...We're just talking in circles.

I initially stated (AGAIN) that: If you have the means to pay for the things you want NOW, then don't get a credit card.

Why? If you can pay for it, pay with a credit card, get the points, and pay it off when you get your statement.